Opinion by: Jack Lu, CEO of BOUNCEBIT
For years, Crypto has promised a more open and more efficient financial system. A fundamental ineffectiveness remains: the disconnection between the American capital markets and the liquidity centers of Asia.
The United States dominates capital formation, and its recent adoption of tokenized treasures and active active people signals an important step towards finance based on blockchain. Meanwhile, Asia has always been a global trading and liquidity center for cryptography despite changing changes in evolution. However, these two savings operate in silos, limiting the way capital can move transparently in digital assets.
It is not only a drawback – it is a structural weakness preventing crypto from becoming a real class of institutional assets. The resolve will lead to a new era of structured liquidity, which makes digital assets more efficient and attractive for institutional investors.
The bottleneck of the capital holding the crypto
The ineffectiveness between the American capital markets and the Asian cryptography hubs comes from the regulatory fragmentation and the lack of financial instruments of institutional quality.
American companies hesitate to bring token treasury bills due to the evolution of regulations and charges of conformity. Meanwhile, Asian trading platforms operate in a different regulatory paradigm, with fewer obstacles to negotiations but limited access to American capital. Without a unified framework, the flow of cross -border capital remains ineffective.
The Stablecoins Pont Traditional finance and crypto by providing an alternative based on the blockchain in Fiat. They are not enough. Markets require more than Fiat equivalents. To operate effectively, they need institutionally trusting assets such as treasures and obligations. Without this, institutional capital remains largely absent from cryptographic markets.
Crypto needs a universal collateral standard
Crypto must evolve beyond the simple dollars of tokens and develop structured and yield instruments that institutions can trust. Crypto needs a global warranty standard that connects traditional finance with digital assets. This standard must meet three basic criteria.
First of all, it must offer stability. The institutions will not allocate significant capital with a class of assets which has no robust basis. Consequently, the guarantees must be supported by real financial instruments which provide coherent return and security.
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Second, it must be widely adopted. Just like USDT de Tether (USDT) and USDC (USDC) has become de facto standards for the stablecoins supported by Fiat, largely accepted compatible assets are necessary for institutional liquidity. The market fragmentation will persist without standardization, limiting the capacity of cryptography to integrate into broader financial systems.
Third, he must be challenged. These assets must be compable and interoperable between blockchains and exchanges, allowing capital to move freely. Digital active ingredients will remain locked in separate liquidity pools without integration of onchain, preventing efficient market growth.
Without this infrastructure, Crypto will continue to function as a fragmented financial system. To ensure that American and Asian investors can access token financial instruments under the same security and governance standard, institutions require a complex path and in accordance with the deployment of capital.
The establishment of a structured framework which aligns the liquidity of cryptography with institutional financial principles will determine whether digital assets can really evolve beyond their current limits.
The rise in institutional quality cryptography liquidity
A new generation of financial products is starting to solve this problem. Tokenized treasure, as Subject And UsycWorks like stable yielding assets, offering investors an onchain version of traditional fixed income products. These instruments provide an alternative to traditional stables, allowing a more economical capital system that imitates traditional money markets.
Asian exchanges are starting to incorporate these tokens, offering users access to yields of American capital markets. Beyond simple access, however, a larger opportunity is the packaging of exposure to cryptography alongside the assets of the US capital market in Tokenized in a way that meets institutional standards while remaining accessible in Asia. This will allow a more robust, compliant and scalable system that connects traditional and digital finance.
Bitcoin also evolves beyond its passive role role. The financial instruments supported by Bitcoin allow Bitcoin (BTC) To be reappropriate for warranty, unlocking liquidity while generating rewards. For Bitcoin to operate effectively on the institutional markets, however, it must be integrated into a structured financial system which aligns with regulatory standards, which makes it accessible and in accordance with investors in all regions.
The decentralized centralized finance (DEFI), or “Cedefi”, is the hybrid model which incorporates centralized liquidity into transparency and component of DEFI, and is another key element of this transition. For this to be largely adopted by institutional actors, it must offer standardized risk management, clear regulatory compliance and in -depth integration with traditional financial markets. Make sure that the instruments based on Cedefi – for example, token vouchers, the use of BTC or structured loans – operate in recognized institutional frameworks will be essential to unlock large -scale liquidity.
The change of key does not only concern tokenization assets. It is a question of creating a system where digital assets can serve as effective financial instruments that institutions recognize and trust.
Why this counts now
The next phase of the evolution of the crypto depends on its ability to attract institutional capital. The industry is at a turning point: unless the crypto establishes a base for a transparent capital movement between traditional markets and digital assets, it will find it difficult to obtain long -term institutional adoption.
The fact of folding the capital with Asian liquidity is not only an opportunity – it is a necessity. The winners of this next phase of growth in digital assets will be the projects that will solve the fundamental defects in liquidity and collateral efficiency, laying the basics of a truly global and interoperable financial system.
The crypto was designed to be borderless. Now it is time to make its liquidity without border.
Opinion of: Jack Lu, CEO of Bouncebit.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
